2026 is set to be a pivotal year for UK employment law. The government’s Employment Rights Act (ERA), which became law on 18 December 2025, aims to modernise UK workplace rights and improve fairness, security and predictability at work. The reforms will roll out through 2026 into 2027.
From April 2026
Family leave and pay
Eligible employees will have a day-one right to paternity leave and unpaid parental leave, removing previous service requirements. The ERA keeps the 26-week qualifying period for statutory paternity pay and allows paternity leave/pay to be taken after shared parental leave/pay.
Statutory sick pay
Statutory sick pay (SSP) will be payable from day one of sickness and the lower earnings limit will be removed, meaning more lower‑paid workers will qualify for SSP. SSP will be calculated as the lower of the prescribed rate or 80% of weekly earnings.
Redundancy and consultation rules
The maximum “protective award” for failing to properly consult in large‑scale redundancies will double to up to 180 days’ gross pay per affected employee, increasing the cost of non‑compliance. The thresholds that trigger collective consultation are being updated and will be set in regulations, with consultation on the detail expected in 2026.
Stronger enforcement: the Fair Work Agency
A new enforcement body, the Fair Work Agency, is due to be established. It will consolidate existing enforcement functions and have robust powers to investigate underpayments (such as SSP, holiday pay or national minimum wage), conduct inspections, impose penalties and even bring claims on workers’ behalf. The precise timing for full enforcement powers is still to be confirmed.
Whistleblowing: sexual harassment disclosures
Reporting workplace sexual harassment will become a specified form of protected whistleblowing, giving stronger safeguards to those who speak up.
Gender pay gap action plans and menopause support
Employers with more than 250 employees will be encouraged to publish gender pay gap action plans, including detail on how they support workers going through the menopause, on a voluntary basis from April 2026, before becoming mandatory in 2027.
NDAs
Clauses that prevent workers from alleging or disclosing relevant harassment or discrimination (or the employer’s response) will be void, subject to limited “excepted agreements” set in regulations.
Statutory trade union recognition and electronic balloting
Unions will face fewer hurdles in taking industrial action, as they will no longer need to show majority support for the bargaining unit, the rule requiring 40% of eligible voters to vote in favour will be removed, and electronic balloting will be introduced.
From October 2026
Fire and rehire
Limits on “fire and rehire” are expected in October 2026 and will make dismissals linked to refusing certain contract changes automatically unfair, except where an employer faces genuine financial difficulty.
Employment Tribunal time limits
Time limits for most Employment Tribunal claims will increase from three to six months (wrongful dismissal claims remain at three months).
Preventing sexual harassment (employer duty) and third‑party harassment
Employers will be required to take all reasonable steps to prevent harassment of staff, with regulations expected to clarify what “all reasonable steps” entails. Liability can also arise if employers fail to take all reasonable steps to prevent harassment by third parties across all protected characteristics.
Trade union reforms
Employers will need to remind workers (within their written statement of employment terms and at regular intervals) that they have a legal right to join a trade union, even if the employer does not recognise unions. Trade unions will have regulated access to workplaces to meet, represent, recruit and organise members. Protection against dismissal for taking part in industrial action will be strengthened, and new protection will cover detriment short of dismissal. Employers must also consult worker representatives before issuing their first written tips (gratuities) policy.
Looking ahead to 2027
Looking ahead to 2027, further reforms will continue to reshape workplace rights. Earlier protection from unfair dismissal, enhanced rights for zero or low‑hours workers, and clearer expectations around flexible working are anticipated. Further regulation of umbrella companies is planned, alongside new protections linked to pregnancy, maternity and bereavement. Altogether, the changes point towards a more consistent, transparent and supportive framework for workers.
If you require assistance in relation to any of the topics we have covered here, please do contact a member of our team: employment@wslaw.co.uk